Build a Successful Sales Strategy

(1)

Presented to KCL

by

Jurek Sikorski

Entrepreneur in Residence, LBS

Independent Business Advisor

Business Mentor

Wednesday, 10 February 2016

Build a Successful Sales

Strategy

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Build a Successful Sales Strategy

What is (and why have) a sales strategy?

Key elements of a sales strategy

The Selling Process

‘Sales Value Proposition’

How to build a successful sales strategy

Ask the Panel

(3)

A

plan

to achieve the sales goal of a

business

Describes how a business will

win,

retain and develop

customers...

A

blueprint

for success

Build a successful sales strategy

(4)

What does a sales strategy do?…

‘Defines the

selling activities

and

allocates resources to deliver the

(5)

Why have a sales strategy?

‘Without a sales strategy the

company’s customer facing people

will struggle to obtain the focus

needed for successful selling’

(6)

A sales strategy addresses common

business challenges

Slow, stagnant or declining sales revenues

Merger of sales forces after an acquisition

Start-up of a new venture

New product introductions

Launch of a new competitor

Expansion to new markets

(7)

Key elements of a sales strategy?…

1. Goal and Objectives

• What is the goal of your business? e.g. ‘We want to become the UK’s leading supplier of hybrid power generators by sales within 3 years’

• What are the objectives that when achieved will deliver the goal?

2. Target Market

• Who is your target customer group?... What /How/Why… do they buy? • Who is the person you are selling to? What are the specific needs…?

3. Products/Services

• What are you selling to the target market? Why would the customer buy…? • What is your sales value proposition?... Customers buy only two things…

4. Competitive Advantages

• Who are your competitors? What are their strengths/weaknesses?...

(8)

Key elements of a sales strategy?…

7. Resources, Skills and Capabilities

• What resources (e.g. sales time, money), skills (i.e. selling) and capabilities (e.g. sales planning, key account management ) are required to sell?

• How will you develop and improve skills… e.g. selling skills training…?

8. Sales Management

• How is the sales target set, sales performance reviewed… coaching provided? • What performance incentives are provided? e.g. bonus scheme

5. Route to market

• How will you reach the customer? e.g. direct and/or channel partners… • What direct route will you use? e.g. sales, telesales, trade shows, internet

6. Selling Process

• What are your selling activities? e.g. prospecting, engaging/presenting…

(9)

What is selling about?...



Helping the customer to buy



Helping the customer to make up his mind

based upon the satisfaction of his needs…



Selling is about creating a ‘win-win’ for

you and the customer



Selling is not so much about shifting

product as winning… customers

Successful selling is about asking

the right questions…

(10)

How customer orientation works!

Need Benefit Feature

Seek help with everyday tasks such as washing, cooking and shopping and also find relief from

loneliness and isolation

Offers help to elderly people who struggle with everyday tasks around the home enabling them to remain independent and relieving isolation and loneliness…

HomeTouch is an on line care services agency which enables elderly people living in London and

needing help with domestic tasks to find and book

trusted carers

An online introductory care services agency In the UK over 700k older people live in

need of domestic help

‘Don’t sell me a care service… help me with my washing, cooking and shopping… help me live independently’

(11)

Key Partners Key Activities

Key Resources

Customer Relationships

Channels

Customer Segments

Cost Structure Revenue Streams

Off grid solar/hybrid power generation industry

Personal _{Construction and Plant} Hire firms – need to service client projects User network

Co-development

Sales team

DFID, Aid Agencies Range of peak power

outputs Reliable power delivery

Silent operation Zero/reduced CO2

pollution Portable Designing, manufacturing

and supplying generators Marketing and selling Recruitment and training

of resellers

Working capital Technical/commercial staff

– develop and market International resellers

Plant and hire firms Battery and power inverter

suppliers

Electronic circuits suppliers

Simple installation/commissioning Investors Facility landlord Cost of sales (<50%) Salaries (£zk pa)

Facility (£xk pa) Price set at £x FOB Revenue £1.8m rising to

over £25m by year 5

Gross Margin: min. 50% Knowledge and expertise _{Range of purchase options}

Marketing (£yk pa)

Resellers

Selling is a key activity of

your business model...

Business Model Generation: Alexander Osterwalder & YvesPigneur 2010

International Aid agencies – Need robust power generation solutions at a

low cost Event and Broadcast

organisers – need a source of reliable power that is non polluting at an

affordable cost

(12)

The ‘Selling Process’

A communication and learning experience

Salesperson learns the needs of the customer

and the customer learns whether the product

will meet needs

Characterised by

nine

activities that are

directed at winning customers

Successful management of the selling

process requires good analytical,

communication,

decision making, and

organisational skills...

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The activities of the selling process…

1. Prospecting:

generating sales leads

2. Classifying leads

: identifying leads with largest revenue potential…

3. Developing a sales plan:

setting plan for a specific customer

4. Making the approach

: connecting via intros, invites and cold calling

5. Engaging the customer:

pitching your sales value proposition

6. Trial closing:

Early attempt to close a sale

7. Overcoming objections:

Removing barriers to making a sale

8. Closing:

Asking for the order

(14)

Ten ways of generating sales leads

Ways of generating leads

1. Seek referrals from present satisfied users e.g. Balfour Beatty, Coca Cola Enterprises 2. Ask channel partners e.g. Speedy Hire

3. Attend conferences and exhibitions e.g. Renewable UK Annual Conference 4. Engage web marketing and social networks

(15)

Ten ways of generating sales leads

Ways of generating leads

6. Publicise your business via news media e.g. Forbes, Guardian, Telegraph, Evening Standard, City AM; retain a PR firm - check out www.prweek.com

7. Post offers of information/product trial for limited period on your website 8. Visit potential customers (e.g. Brandon) and influencers

9. Partner to stage promotion events e.g. Speedy Hire

10. Engage Telemarketing e.g. The Telemarketing Company

Be imaginative

in finding ways

to generate

leads

(16)

Engaging the Customer

A crucial step in the selling process

Beginning of a two-way communication between the

salesperson and the customer…

critical hour

This is the pitch to capture attention, develop interest

of the customer, raise desire and evoke action

The selling model A – Attention

I – Interest D – Desire A – Action

Aiming to win customer acceptance of the

sales value proposition

Selling benefits is what moves the

customer to buy…

The sales value proposition must feature

prominently in the sales strategy

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Sales Value Proposition

A benefits statement that fulfills the needs of

customers and creates value -

needs to answer the key

questions...

Differentiates product/service from competition

Dramatically improves marketability of

product/service...

A powerful branding tool that supports the sales

strategy through marketing communications e.g.

advertisements, website, social media

Forges a lasting reputation that raises customer

awareness... and enables sales

(18)

A Winning Sales Value Proposition

‘Cygnus is a clean energy storage

solution that delivers dependable off

grid power, reduces emissions and

(19)

How to build a successful

sales strategy?

Step 1

Engage the

customer

facing

team

Step 2

Describe the

current

situation

Step 3

Create the

‘Sales

Strategy

Canvas’

Step 4

Prepare

sales

strategy

statement

Step 5

Launch/

monitor

progress

and adapt

(20)

Sales Strategy Canvas

A UK based manufacturer of hybrid power generators

Products/Services

- Cygnus range - Sale/rent/lease

- ‘Sales Value Proposition’

Target Market (Customer)

- Construction firms, events organisers, aid agencies - CEO, FD, PM

- Customer seeking dependable power and lower costs

Competitive Advantages

- Reliable power delivery - Reduced pollution

- Lower fuel & logistics costs

Route - CEO - Sales team (5) - Distributors Sales Goal - Year: £Xm - Q: £ym/£zm - Direct/Distributor Selling - F2F - Exhibitions - Web marketing

Resources and skills

- Time and money - Marketing literature - Skills training

Sales Management

- Meet on Monday (9-10.30) - Review key sales metrics - ‘On the job’ coaching

(21)

- continuing to deliver a strong ‘sales value proposition’ that is based on a customised service for both retailers and shoppers

- building direct channels and personal relationships with an expanded number of top tier national retailers

- creating a shopper community and become more engaged with shoppers through its fashion blog and ‘shopper events’

- establishing new customer acquisition channels and leveraging existing channels in particular social media to attract shoppers to its website

- building automated services for retailers and shoppers via its website

- opening new revenues streams including subscription fee based premium services for shoppers

- accessing new geographical markets including North America and Middle East

Sales Strategy

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Meet the panel

Nitzan Yudan

Co–Founder and CEO

FlatClub

Tim Brownstone

Founder and CEO

KYMIRA

Jonathan Smith

Co-Founder and CEO

Pobble Education

(23)

What is your sales strategy?

What was/is your biggest challenge about

selling?

What surprised you most?

What has been your learning experience?

What are your top three tips for someone

developing a sales strategy

Asked the panel to address five

questions...

(24)